Chevron Announces Natural Gas Find in Australia

SAN RAMON, Calif., July 12, 2006 -- Chevron Corporation (NYSE: CVX) today announced a natural gas find by one of its affiliates at its Chandon-1 exploration well located 160 miles (260 kilometers) offshore north western Australia in permit WA-268-P.

The Chandon-1 well was spud on June 21, 2006, and it sits within the western reaches of the Greater Gorgon development area. It was drilled using the semi-submersible Transocean "Jack Bates" drilling rig in water depths of approximately 3,900 feet (1,200 meters) with total depth of drilling to 10,200 feet (3,100 meters).

"This gas find underscores the value of focusing Chevron's exploration program on high-impact opportunities," John Watson, president, Chevron International Exploration and Production, said. "Our continued exploration success in Australia, combined with our commitment to developing these resources, offers great prospects for gas markets across the Asia Pacific and North America regions."

Jay Johnson, managing director of Chevron Australia, said Chandon could be an important addition to Chevron Australia's gas resources. "Success in our exploration efforts is always welcome and as Chandon-1 is an exploration well, further work is required to determine the potential of the gas find.

"Our efforts to commercialize the fields of the Greater Gorgon area, our commitment to the expansion of the North West Shelf Venture and our increased exploration program in the region all have the potential to deliver significant long-term benefits to Australia," Johnson explained.

Permit WA-268-P is held 100 percent by Chevron affiliate Texaco Australia Pty Ltd. A farm-in arrangement with affiliates of ExxonMobil and Shell has been executed to align future permit equity with the 2005 Gorgon Area Framework Agreement, which underpins development of the Greater Gorgon area gas resources.

Chevron Australia is operator and 50 percent joint-venture participant in the Gorgon Project, joint-venture participant in the North West Shelf Venture, and operator and joint venture participant in the Barrow Island and Thevenard Island oil fields. The company is also operator of significant exploration acreage located off the north west coast of Australia.

Chevron Corporation is one of the world's leading energy companies. With more than 53,000 employees, Chevron subsidiaries conduct business in over 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing, and distributing fuels and other energy products. Chevron is based in San Ramon, Calif. More information on Chevron is available at www.chevron.com.

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This press release of Chevron Corporation contains forward-looking statements relating to Chevron's activities in Australia that are based on management's current expectations, estimates and projections about the petroleum, chemicals and other energy-related industries. Words such as "anticipates," "expects," "intends," "plans," "targets," "projects," "believes," "seeks," "estimates" and similar expressions are intended to identify such forward-looking statements. The statements are based upon management's current expectations, estimates, and projections; are not guarantees of future performance; and are subject to certain risks, uncertainties and other factors, some of which are beyond the company's control and are difficult to predict. Among the factors that could cause actual results to differ materially are changes in conditions affecting supply and demand for crude oil, natural gas and refined petroleum products; changes in local government regulation; and general economic, social and political conditions. You should not place undue reliance on these forward-looking statements, which speak only as of the date of the press release. Unless legally required, Chevron undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.